Finding Text
2022 ? 006 ? Child Nutrition Cluster ? Special Tests and ProvisionsFederal Agency: U.S. Department of EducationFederal Program Title: Child Nutrition ClusterAssistance Listing Number: 10.553/10.555Federal Award Identification Number and Year: FY 21 and FY 22Pass-Through Entity: Indiana Department of EducationPass-Through Entity Number: FY 2021 and FY 2022Award Period: July 1, 2020 through June 30, 2022Type of Finding:? Significant Deficiency in Internal Control over ComplianceCriteria: ?An SFA is required to account for all revenues and expenditures of its non-profit school food service in accordance with state and federal requirements. An SFA must operate its food services on a non-profit basis; all revenue generated by the school food service must be used to operate and improve its food services (7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i)).?Condition: During our testing, we noted Transfers to and from the holding account to the school lunch program were not approved by the business manager and board of school trustees. 4 out of 4 transfer samples that were selected did not have proper approval.Questioned costs: None.Context: Using a statistically valid sample, 4 of 4 selections did not have proper approval from the business manager and board of school trustees.Cause: Improper understanding and implementation of existing policies.Effect: Costs could be charged to a federal grant which do not meet the allowability standards, leading to noncompliance.Repeat Finding: No.Recommendation: We recommend the South Montgomery Community School Corporation ensures controls are consistently in place. Training over the organization's controls may be beneficial.View of Responsible Officials: There is no disagreement with the audit finding.